Fed's Cook files federal lawsuit to fight firing
By: Bart Jansen
and Maureen Groppe
USA Today
WASHINGTON - Lisa Cook, the Federal Reserve governor President Donald Trump said he fired, filed a federal lawsuit arguing the president has no power to remove her from office.
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U.S. District Judge Jia Cobb scheduled a morning hearing for August 29 [2025] to determine whether to block trump's action temporarily while the case is litigated.
..... The unprecedented legal case could eventually reach the supreme Court, as the dispute seeks to resolve how much authority the president has over the so-called independent board.
..... When Congress cerated the Fed in 1913, lawmakers said officials could only be removed for "cause,' which means a good reason. The Supreme Court has said this gives fed officials unique protection from removal.
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"This case challenges President Trump's unprecedented and illegal attempt to remove Governor Cook from her position which, if allowed to occur, would be the first of tis kind in the Board's history," Cook's lawsuit said. "The President's actions violate Governor Cook's Fifth Amendment due process rights and her statutory right to notice and a hearing under the" Federal Reserve Act.
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But Trump contends allegations of Cook's "potentially criminal" action filling out mortgage documents was enough for him to fire her. trump also argues he has the power to fire anyone in the executive branch.
..... William Pulte, a Trump appointee who is the director of the Federal Housing Fiance Agency, raised allegations that Cook filled out mortgage documents hat claimed homes in Michigan and Georgia as her "primary residence." Pulte referred the matter to Attorney General Pamela Bondi for investigation.
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But Cook has not been charged criminally. Legal experts said it's not clear if she can be removed for "cause" if she hasn't had a chance to respond to allegations against her.
..... Removing Cook could hurt confidence in the independence of the fed, which sets interest rates based on economic goals.
..... Vice President JD Vance defended Trump's decision in an exclusive interview August 27 [2025] with USA Today.
..... The Fed issued a statement August 26 [2025] saying the agency would abide by any court decision.
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Like Trump's other efforts to fire federal workers, his attempt to remove Cook could end up at the Supreme Court. Trump is testing the limits of his executive power, including over agencies designed to be insulated from political influence.
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In May [2025] an ideologically divided court said Trump could fire without cause members of two such agencies that deal with labor issues.
..... But the majority also notably said the Federal Reserve is different from the National Labor Relations Broad and the Merit System Protection Board.
..... The court called the central bank a "uniquely structured, quasi-private entity," signaling the justices would likely uphold the constitutionally of the bank's for-cause removal protections.
..... Trump's move is unprecedented in the Fed's nearly 112-year history, another reason the Supreme Court could weigh in.